Office of the Deputy Chief of Staff, G-1  Letterhead
July 31, 2003


MEMORANDUM FOR SEE DISTRIBUTION
SUBJECT: Thrift Savings Plan (TSP) Catch-Up Contributions for Participants Age 50 and Older

On November 27, 2002, the President signed Public Law 107-304, which permits eligible TSP participants who are age 50 or older to make tax-deferred "catch-up" contributions from their basic pay to their TSP accounts. These contributions are a supplement to the participant's regular employee contributions and do not count against the Internal Revenue Code's elective deferral limit of $12,000 in 2003. However, catch-up contributions have their own eligibility criteria and annual limit of $2,000 in 2003. Information regarding catch-up contributions, including the annual limits and eligibility criteria are available at https://www.abc.army.mil and The Thrift Savings Plan Fact Sheet, "Catch-Up Contributions" at http://www.tsp.gov/forms.

Beginning August 24, 2003, eligible Department of the Army civilian employees may make TSP catch-up contribution elections electronically via the Employee Benefits Information System (EBIS) web application at https://www.abc.army.mil/ or the Interactive Voice Response System (IVRS) automated telephone system at 1-877-276-9287 (see the Army Benefits Center - Civilian (ABC-C) Telephone Menu on the ABC-C web site for OCONUS phone numbers). Hard copy enrollment forms will not be accepted. The Defense Finance and Accounting Service (DFAS), the Department of Defense payroll system, will begin to process catch-up contribution deductions September 7, 2003.

Implementation of TSP catch-up contributions in all Federal agencies, has been dependent upon adaptation of personnel and payroll systems to allow for deduction of catch-up contributions. The automated enrollment systems EBIS and IVRS cannot be turned on to accept these elections until the data can flow to the Defense Civilian Personnel Data System (DCPDS) and on to the DFAS systems in the pay period following the one in which the election is made. The delay in implementing the program does not affect the maximum contribution amount of $2,000 for 2003. Eligible employees considering participation in this new benefit are encouraged to start thinking about deduction amounts if they intend to contribute the maximum $2,000 in 2003.

The ABC-C web site at https://www.abc.army.mil/ provides a "Hot" item with links to Question and Answers and detailed information about TSP catch-up contributions. ABC-C Counselors are available at 1-877-276-9287 to answer questions regarding TSP catch-up contributions.

Should you have any questions regarding this memorandum, please contact Sherry Smith, Policy and Program Development Division, Benefits and Entitlements Team. She may be reached by e-mail, Sherry.Smith3@us.army.mil, or by telephone at DSN 221-9984 or commercial 703-325-9984.

FOR THE DEPUTY CHIEF OF STAFF, G-1:



//original signed//
David L. Snyder
Assistant G-1 for Civilian
Personnel Policy




DISTRIBUTION:
OFFICE, SECRETARY OF THE ARMY (JDRP-HR)

COMMANDER
US ARMY EUROPE AND SEVENTH ARMY
EIGHTH US ARMY
US ARMY FORCES COMMAND
US ARMY MATERIEL COMMAND
US ARMY TRAINING AND DOCTRINE COMMAND
US ARMY CORPS OF ENGINEERS
US ARMY PACIFIC
MILITARY TRAFFIC MANAGEMENT COMMAND
US ARMY CRIMINAL INVESTIGATION COMMAND
US ARMY MEDICAL COMMAND
US ARMY MILITARY DISTRICT OF WASHINGTON
US ARMY SOUTH
US ARMY SPECIAL OPERATIONS COMMAND
US ARMY INTELLIGENCE AND SECURITY COMMAND
US ARMY SPACE AND MISSILE DEFENSE COMMAND
US MILITARY ENTRANCE PROCESSING COMMAND

DISTRIBUTION CONTINUED

US ARMY RECRUITING COMMAND
US ARMY RESERVE PERSONNEL COMMAND
US ARMY TEST AND EVALUATION COMMAND
US SOUTHERN COMMAND

DIRECTOR, HQDA INSTALLATION MANAGEMENT AGENCY

SUPERINTENDENT, US MILITARY ACADEMY

DIRECTOR
CIVILIAN PERSONNEL OPERATIONS CENTER MANAGEMENT AGENCY
CIVILIAN PERSONNEL OPERATIONS CENTER, US ARMY EUROPE AND SEVENTH ARMY
CIVILIAN PERSONNEL OPERATIONS CENTER, SOUTHWEST REGION
CIVILIAN PERSONNEL OPERATIONS CENTER, PACIFIC REGION
CIVILIAN PERSONNEL OPERATIONS CENTER, NORTHEAST REGION
CIVILIAN PERSONNEL OPERATIONS CENTER, SOUTH CENTRAL REGION
CIVILIAN PERSONNEL OPERATIONS CENTER, NORTH CENTRAL REGION
CIVILIAN PERSONNEL OPERATIONS CENTER, KOREA REGION
CIVILIAN PERSONNEL OPERATIONS CENTER, WEST REGION

DEPUTY CHIEF OF STAFF FOR INTELLIGENCE, ATTN: DAMI-CP

OFFICE OF THE GENERAL COUNSEL, ATTN: SAGC (MS. JOHNSON)
OFFICE OF THE JUDGE ADVOCATE GENERAL, ATTN: DAJA-LE
(MS. NUGENT)